| View this article at: http://www.macnn.com/articles/04/07/16/ms.bets.on.music.subs/ |
Friday, Jul 16, 2004 9:25am
Microsoft sees music subscriptions as the future |
Microsoft is betting that the subscription model for online music purchases, and new players it plans to roll out that support subscription downloads, will trump a la carte music stores. The Wall Street Journal (paid subscription required) notes that proponents of Microsoft's model point out that for just $10 or $20 a month, subscribers will be able to fill up their entire digital player with music, as opposed to the $10,000 or so it would take in iTunes Music Store purchases to fill the 40GB iPod. Microsoft's approach was reportedly a tough sell to record labels at first, but the company pointed out that the average music listener spend $4.66 on music each month, and that subscription services will accordingly generate more money with their monthly fees. When a subscriber stops paying for the service, they lose access to all the music they have downloaded.
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